Wilhelmsen

will cut its fleet by 14 vessels as automobile production and demand nosedive around the world amid the coronavirus pandemic.

The Oslo-based shipowner, one of the world’s biggest car movers with a fleet of 125 ships, said it would scrap four vessels and idle another 10 as auto manufacturers halt production at plants and many countries lock down economic activity. The company said it will also suspend dividend payments this year and next to preserve cash.

“The world has changed dramatically over the past weeks, and we are all feeling the effect,” said President and Chief Executive Craig Jasienski. “The impact these events will have on the world economy and global supply chains remains unpredictable, but it is increasingly clear that current events will have longer term impacts.”